Economic Democracy at Work: Why (and How) Workers Should Be Representated on U.S. Corporate Boards

Abstract

Workers should have representation on corporate boards of directors in the United States, as employees are key stakeholders whose contribution is necessary for the success of innovative enterprises. The European model of codetermination has proven effective, yet it cannot be simply imported to the United States. Implementing such a reform in the 21st century U.S. context requires consideration of many key issues, including the appropriate mechanisms for worker-director election, representation, and organization. The article addresses the relationship between corporate law and labor law, including the restrictions on company-dominated labor organizations.

Keywords: Corporate governance; worker representation on boards; stakeholders; boards of directors

JEL Classification: G34; G38; B50; K22